The freight market for Aframax was relatively flat last week, but the average rates fell somewhat. The rates in the US Gulf rose to more than $26.000, while the rates in other areas went down. The big spikes in rates, we have seen the last weeks confirms our believe that a good high season is right around the corner.

Aframax 12 months charger rates: $14.500 per day
Average rate in the spot market: $13.700 per day

Dry Bulk
Baltic Dry Index fell last week with 5,6% and closed at 1.490 points. The rates for Panamax corrected down 2,6% to 12.249 per day. The correction for the Capesize rates continued last week with an 11,7% decline. The activity between Australia and China was declining, but the rates got support by the end of the week. It is expected that developments will turn around within the next few weeks and move the index north again. Panamax rates also fell somewhat, but significantly improved Chinese imports of grain and soya beans, which rose 14% in August.

It is expected that this trend will continue in the future, due to poor crops in China. A large part of imports is from Brazil, which gives good fleet utilization (ton-mile). We have an exciting winter ahead.

The demand for dry cargo is on route to exceed fleet growth by 1.15% so far this year. This will give greater impact on earnings in the future.

Capesize 12 months charger rates: $21.250 per day
Panamax 12 months charger rates: $13.750 per day

An Aframax from 2009 of 105,000 dwt was sold last week. The ship is built in Korea and achieved a price of just over $ 20 million. An older VLCC and a smaller tanker were traded.

There was reported 7 transactions in the dry cargo market, but none with interest for us.